Tag: Bonds
Bond Investing in Your 70s
We should all plan on enjoying our 70s while preserving capital. Even better, we can help our family build generational wealth while we travel the world. There is much to accomplish in the later chapters of life, but it requires financial sophistication to achieve our goals. Welcome back to the Bond Investing at Any Age…
Bond Investing in Your 60s
What happens when you turn 60 (59.5)? That’s right; you gain access to your taxable 401Ks and non-taxable Roth IRAs. I’m not a big fan of the 401K system because it is basically a high-yield savings account. We have people turning 60 with a large pot of money and no skills to handle it. Welcome…
Treasury Bonds vs Municipal Bonds: Federal vs State Tax Advantages
A true marker of a wealthy mindset is the passion for reducing taxes. Often rich people receive grief because they want to lower or eliminate their tax bills. They usually receive this hate from the lower or middle class, who pay a large percentage of their income to the government. However, rich people pay the…
Compound Interest: You Can Pay It or You Can Earn It
If you ever seek motivation in life, look no further than the power of compounding—everything we do in life compounds, either positively or negatively. “The Compound Effect” by Darren Hardy explores how we can exploit compounding to improve anything we want in our lives. The more things we put into motion, the more chances we…
Middle-Class Investing 106: Using Bonds to Create Safe Cash Flow
As we start understanding assets, we see value in safely accumulating more things that produce money. Just because we are middle-class doesn’t mean we can’t have access to some significant investment products. Treasury bonds are the safest investment instruments we can buy; we can purchase them directly from the US Treasury (like large institutions). Retirement…
30-Year Bonds vs. Blue-Chip Dividend Stocks
Today is a great moment in time to be an investor. It’s been over 13 years since stocks and bonds had to compete for your investment dollars. If you are searching for a 4% yield, you can now choose between a 30-Year Bond or a blue-chip dividend-paying stock. However, the answer doesn’t lay in numbers;…
Bonds for Mom: A Low-Risk Retirement Plan for Mom
As our mothers increase in age, chances are they will receive some kind of windfall. This can be from an inheritance, a life insurance policy, downsizing a home, or cashing in a 401K. As the son or daughter, you will want to ensure this money lasts until the end. Most people will turn over the…
Bond Investing in Your 50s
Hopefully, we will figure out our financial path during our 20s, 30s, and 40s to focus on our family in our 50s. That’s right; time to build passive income for our children through bond investing. Can you imagine if you had $20,000, $30,000, or even $50,000 of Series “I” bonds waiting for you by age…
High-Yield Bond Reinvestment in Action
I recently discussed high-yield bond reinvestment as a safe way to assume more risk in your portfolio. It’s a great way to dabble in the waters of income investing. My 30-year bonds just paid me their semi-annual payments, so it’s time to reinvest. Today, I will walk through how to convert a reasonably low-yield coupon…
The Bonds of Thanksgiving: Tis’ The Season to Invest in Bonds
It’s been a long time since bonds were attractive during the holiday season. You would have to travel back before 2008 to find such a time. This year, the Federal Reserve is trying to fight inflation—raising their interest rates hard and fast. Raising rates could cause a recession and higher employment. This could be a…
Bond Investing in Your 40s
Our 40s are a time to double down on life and start getting things done. Hopefully, we will leave our 30s with no debt and an online business or a high-paying job. The goal of our 40s is to ensure we have enough income in our 80s and 90s. We do that by focusing almost…
Bond Investing in Your 30s
I have written many articles covering the special period called your 30s. In every piece, I cite the 30s as the most expensive and stressful time in your life. Retirement Planning in Your 30s Real Estate Investing in Your 30s Staying Debt-Free in Your 30s Dividend Investing in Your 30s Let’s continue the tradition with…
Bond Investing in Your 20s
I spend a lot of time writing about dividends and income investing. However, recently bonds have become attractive because they offer higher yields compared to the last 10-15 years. Now, it’s time to write the companion series to my Dividend Investing at Any Age series (20s, 30s, 40s, 50s, 60s, 70s), this time focusing on…
Investing for Interest 110: Bond Buying is Back Baby!
It’s been an exciting year thus far in 2022. Yes, the market is in full retreat, and we are moving into a downturn and recession. However, this opens up new possibilities for our investment portfolios. With the rise in interest rates comes a chance to obtain high-quality bonds at great prices. Bonds haven’t been this…
Dividend Growth Investing vs. Bond Growth Investing
The market is moving into a bear market, and the economy is moving into a recession. There is a lot of doom and gloom floating around, but there is a silver lining. There has never been a better time to invest in the last 20 years. Stocks and bonds have been beaten down so severely…
How to Buy and Track 30-Year Treasury Bonds
I was writing an article about my Recession Investing Plan yesterday and realized how tricky it is to purchase 30-Year Treasury Bonds. I started buying these bonds three years ago and had to learn via trial and error. I haven’t purchased a 30-Year bond in a couple of years because yields have been low. Free…
Bond Growth Investing: Bonds to the Rescue
Why should dividends have all of the fun inside of your growth investing portfolios? Is there a way to mirror dividend growth in our bond portfolios? The answer is yes and no. However, bonds can be a great addition to anyone’s passive income and growth portfolios, but they take a little more education than DGI…
The Magic of High-Yield Bond Reinvestment
Do you want to be a high-yield dividend income investor but fear losing principle? Almost anything you invest in with high-yield faces interest rate risk. It’s understandable if you gravitate to safer products like Series “I” Bonds or Treasury Bonds. If you are near retirement, you must protect capital at all costs. But what if…
Bonds 4 Life: I’m Buying 30-Year Treasury Bonds at 4%
It’s been a while since 30-year Treasury Bonds have appealed to the investor inside me. When I started investing in 2019, I was getting 30-year bonds at around 3.3%. It turns out that those were the peak rates for the next three years. Rates slowly decreased and then jumped off the ledge during the pandemic. …
5 Takeaways from “The Bond Book”
“The Bond Book” by Annette Thau is a must-read for any investor in any asset class. The bond market is much larger than the stock market. You wouldn’t know that by comparing the media coverage of the two. Bonds are everywhere, in every asset class, government entity, corporation, and mortgage ecosystem. To be a successful…
